Gold Price Outlook – Gold Continues to Trade in Range

Gold Technical Analysis

The gold market has been fairly choppy and quiet in electronic trading, as it is Juneteenth in the United States, so therefore Thursday is going to be a very quiet holiday session. With that being the case, I wouldn’t expect too much from the overnight market, and that’s pretty much what happened. The market has shown itself very hesitant to break above the $3,500 level, so I think that might be one of the more important numbers on this chart.

If we could break above the $3,500 level, then I think you have the possibility of a potential leg higher that could go as high as $3,800 based on the measured move of the consolidation that we find ourselves in. All things equal, though, I think this is a market that, given enough time, dips will continue to attract buyers because, let’s face it, there are plenty of things out there that could cause people to run for safety in the form of hard assets such as gold. The 50 day EMA is currently hanging around the $3,300 level and is rising. So, I think that’s something worth paying attention to as well.

But ultimately, you have to look at this as a market that is simply meandering around, trying to absorb a lot of pressures from external forces and perhaps waiting for some type of clarity with these bigger moves. The Federal Reserve during the trading session on Wednesday had suggested that they aren’t as close to cutting as some people thought. So that might be putting a little bit of a drag on gold, but all things being equal, this remains a bullish market that you should be a buyer of on dips when you find value.

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